Insured contractors help protect property owners from liability concerns throughout a construction project. This typically includes general liability insurance, which covers third-party injury claims.
Construction accidents are complex legal situations. If an uninsured contractor or worker gets injured on your property, you could be sued or held responsible for significant medical bills. Insured contractors have workers’ compensation policies that cover workplace injuries to the crew, so property owners don’t take on that liability. If a contractor’s employee suffers an injury onsite, the property owner’s insurance typically won’t cover it; the contractor’s policy would handle this.
A contractor without insurance opens you up to significant financial risk. One construction accident could result in substantial legal and medical bills without the contractor’s policy as a backup plan. Requiring current proof of insurance before hiring a contractor reduces liability risks for property owners.
The Importance of Workers’ Compensation Insurance
In addition to protecting clients, workers’ compensation provides essential care for contractors and crews who suffer job-related injuries or illnesses. Uninsured contractors often need help to pay their steep medical bills if an accident occurs on a customer’s site.
The right insurance translates to proper protection and less personal liability exposure before, during, and after partnering with a contractor.